Can startups think differently when it comes to accounting?

Big businesses play a huge role in keeping the economy stable. However, by nature, there are some that become a little set in their ways and follow the 'if it isn't broken, don't fix it' mantra. Startups on the other hand are completely different. Many try to be disruptive and innovative in an effort to unlock greater results.

How does this mindset work when it comes to accounting? Can new businesses afford to be a little more slapdash?

Balancing risk

Well, if anything, anyone starting a business in Australia will likely have to be a little more careful when it comes to finance, as the potential fallout from a misstep could be as severe as business closure.

However, that doesn't mean startups can't be innovative when it comes to the tracking and accounting of their finances. In fact, Accounting Today contributor Jon Liebtag explained that small businesses can effectively choose the level of stability they build into their financial practices.

Naturally, everything needs to be weighed up accordingly, and the level of risk and reward should be discussed with a small business consultant, but startups have more freedom to carve their own path than some bigger peers.

Being specific

Forbes contributor Mary Ellen Biery explained that many small business owners aim to copy big conglomerates when it comes to accounting, rather than ensuring that the practices they follow are best suited to their needs.

Again, seeking professional advice here is the trick, especially if the company is aiming to intertwine finance with any wider business development strategy.

Ultimately, financial planning and monitoring may seem like a minefield for new business owners, but it can actually offer an opportunity to do things a little innovatively, and set the company on a stable footing for the months and years to come.